Chrome User Value Drops By 30% Due to Privacy Sandbox

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How does the new privacy technology affect companies business and the Internet in general?

A week ago, Google announced the beginning of the rejection of tracking cookies in the Chrome browser for 30 million users, which is only 1% of the total number of users of the popular browser. By the end of 2024, the company plans to completely block cookies, replacing them with a new tracking system, Privacy Sandbox, which, according to Google, provides more privacy. The change will have a significant impact on the entire structure of the Internet.

Advertising firm Raptive notes that new Google users without cookies generate 30% less revenue. Refusing cookies affects how online advertising works. Previously, user information was collected using cookies, which allowed advertisers to target their ads more accurately. Now, without cookies, it is more difficult to provide advertising systems with detailed user data, which reduces the cost of advertising.

Google claims that the Privacy Sandbox system will combine privacy with an opportunity for advertisers to earn money. The system will use the user's activity data stored on their device and will not disclose personal information or online activities.

The advertising industry, which is more than 30 years old, is faced with the need to adapt to new conditions. This applies not only to Google, but also to other AdTech companies that are looking for ways to circumvent new privacy restrictions and develop their own tracking systems.

Experts suggest that advertising budgets may be reallocated in favor of large platforms such as Google and Meta*, which can offer more accurate targeting without the use of cookies, which can have a negative impact on sites and applications that earn from advertising. Rejecting cookies in Chrome is a significant step that will take time to fully adapt, both on the part of advertisers and users.

The Privacy Sandbox is a set of Google technologies that aims to eliminate third-party cookie trackers on the web and replace them with solutions that preserve privacy when serving personalized content and ads. The central component of Privacy Sandbox is the Topics API, which sorts users into interest groups based on the sites they visit. In this way, websites can display personalized ads without even knowing the user's identity. And users, in turn, can customize the displayed themes and refuse to personalize ads.

Another feature called IP Protection aims to hide users IP addresses from websites by redirecting requests through Google's servers. This gives Google access to all user activity, which drew criticism from Proton, which called it "privacy in words."
 
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